Cathay predicts cargo slowdown into H2 2012

Cathay Pacific Airways, which earns 30% of revenue from its cargo business, has warned the slowdown in air freight may continue into the second half of the year. The passenger and cargo carrier reported a 10th consecutive decline in monthly volumes.

Chief Executive Officer John Slosar said he wasn’t expecting the trend to reverse in the next few months although he hopes “in the second half of this year things start to look better, but that will very much depend on the economy”.

Cathay has reduced freight capacity to North America and Europe as demand for goods decline. The airline’s cargo traffic fell by 18% in January from a year ago.

One thought on “Cathay predicts cargo slowdown into H2 2012”

Whatever prediction one makes, one has to include the caveat “assuming the eurozone doesn’t disintegrate.”

The economies of most countries and/or regions outside of Europe are either recovering, or didn’t suffer too much in the first place. If the EU can contain the damage caused by a complete collapse in Greece (which increasingly seems inevitable), and pull through with the euro more or less intact, then Mr. Slosar’s prediction seems reasonable. But if the damage spreads and the eurozone disintegrates, who knows what will happen?